HomeBase MetalsAfferro shares on the rise after takeover bids

Afferro shares on the rise after takeover bids

Drilling is well
underway at Afferro’s
three iron ore projects
London, England — 03 January 2013 – Shares in Afferro Mining Incorporated “’ a developer of iron-ore projects in Cameroon “’ have risen the most in more than a year, in the wake of a company announcement revealing that it had received two takeover approaches.

Bloomberg News reports that Afferro jumped 40% to C$2.10 in Toronto, the biggest gain since August 2011. Earlier in the day, the stock rose 11% in London.

Afferro received an “initial approach” from International Mining & Infrastructure Corporation  plc, (IMIC), it said in a statement. IMIC would be prepared to make an offer, subject to completion of satisfactory due diligence and certain other conditions at 115 pence (C$1.87) to 140 pence a share, Afferro added.

Last year IMIC bought a 3.9%stake in Afferro for C$3.2 million with the intention of turning the holding into a strategic one, it said in a statement. Afferro, which has doubled this year, owns the Nkout, Ntem and Akon iron-ore projects in Cameroon.

“The approach from IMIC is at a very early stage,” Afferro explained. “There can be no certainty that a formal offer will be forthcoming.”

Afferro said it’s also in talks with another party about a possible offer, which precludes it from engaging in discussions with IMIC until 13 January. IMIC would fund its offer with “an undisclosed mix of cash, yet to be raised by IMIC, and new IMIC shares,” Afferro said.

Source: Bloomberg News. For more information, click here.